Thursday, 17th August 2017

BI remains optimistic about 5.2 percent growth for 2017

8th August 2017 | 3.463 Views
Jakarta (ANTARA News) - Bank Indonesia (BI) remains optimistic that the national economy will grow by 5.2 percent in 2017, despite the relatively stagnant growth of 5.01 percent in the second quarter.

"We are still optimistic. Indeed, the growth in the first and second quarters stayed at a range of 5 percent, it could exceed 5.2 percent in the third and fourth quarters," BI Governor Agus Martowardojo said after an official meeting with Minister of Public Works and Housing Basuki Hadimuljono here, Monday.

The Central Statistics Agency (BPS) announced earlier in the day that the second-quarter economic growth was relatively stagnant at 5.01 percent, compared with the previous quarter.

Agus noted the second-quarter growth was influenced by consumption which tended to shift to the third quarter. Government spending on civil servants salaries in June, and the payment of tuition fees coinciding with the fasting month of Ramadhan caused the public to restrict consumption.

In addition to this, the prices of Indonesias key export commodities were also corrected, while at the same time, many exporters waited for the prices of the commodities to improve, he stressed.

"In general, the Indonesian economy showed signs of improvement, and we are optimistic that the third- and fourth-quarter growth will stay at 5.2 percent," he said.

The BPS observed that the improving performance of investment or formation of gross fixed capital contributed to the second-quarter growth of 5.01 percent year-on-year.(*)